Microsoft 1998 Annual Report: Stockholders Equity Statements

Stockholders’ Equity Statements

In millions

Year Ended June 30					1996		1997		1998

Convertible preferred stock

	Balance, beginning of year				–		–		$ 980

	Convertible preferred stock issued				–		$ 980		–


		Balance, end of year			–		980		980



Common stock and paid-in capital

	Balance, beginning of year				$ 2,005		2,924		4,509

	Common stock issued				504		744		1,262

	Common stock repurchased				(41	)	(91	)	(165	)

	Structured repurchases price differential				–		–		328

	Proceeds from sale of put warrants				124		95		538

	Reclassification of put warrant obligation				(20	)	45		–

	Stock option income tax benefits				352		792		1,553


		Balance, end of year			2,924		4,509		8,025


Retained earnings

	Balance, beginning of year				3,328		3,984		5,288

	Net income				2,195		3,454		4,490

	Preferred stock dividends				–		(15	)	(28	)

	Common stock repurchased				(1,344	)	(3,010	)	(2,631	)

	Reclassification of put warrant obligation				(210	)	590		–

	Net unrealized investment gains and other				15		285		503


			Balance, end of year		3,984		5,288		7,622


				Total stockholders’ equity	$ 6,908		$10,777		$16,627

Last updated May 27, 2010